Look Out Same-Day Delivery, Here Comes Staples

With Same-Day Delivery on the rise with companies like Amazon and Best Buy, Staples is a close competitor, having some share in the consumer electronics market also. Its no surprise that Staples has decided to jump into offering the trendy online service option in order to increase sales and meet customer online demand.

Staples has announced that it has officially launched "Staples Rush”, a same-day delivery program within several major cities throughout the US. The announcement comes shortly after its' denied merger with Office Depot. The initial roll-out will include parts of Boston, Dallas and Manhattan. Los Angeles, San Francisco, Seattle, Chicago, and Houston will receive the service next. Staples' same-day delivery will involve only product delivery, however, copying and printing will be available in the coming months.

“By offering a wholly-owned, same-day delivery experience, Staples is providing businesses the type of customer service they’ve come to expect from us throughout their entire transaction,” said Mike Bhaskaran, Staples' executive vice president of supply chain and logistics. He went on to say, “The development process for Staples Rush is a truly a collaborative and cross-functional effort that brought together different areas of expertise, including supply chain, eCommerce and merchandising, to create a valuable service for our customers.”

Staple's is somewhat in competition with Best Buy, who announced in April this year that it will be launching a pilot same-day delivery program. The consumer electronics retail leader began testing same-day delivery in 13 more major metropolitan markets throughout the US. BestBuy jumped in deeper into the service after Amazon's announcement that it was expanding its' current free same-day delivery into 11 additional US cities. Amazon is influencing several large retailers to dive into same-day delivery or risk losing market share online.

It may not have directly turned Staple's into launching Staple Rush; however, make no mistake that there is an under-current that Amazon has created online that is leaving most retailers with no choice.

Faisal Masud, executive vice president of global eCommerce at Staples, commented in regards to the need for Staple's to offer faster order fulfillment. He stated, “Businesses want their online orders fulfilled faster than ever. Thanks to Staples’ unmatched omnichannel capabilities, which already include the ability to buy online and pickup in store, we will deliver the products customers need when they need them, so they can make more happen without having to wait on shipped orders.”

The closer in proximity a retailer is to their customers, the faster they can get those online items into their hands. Staple's is another big retailer that has the brick-and-mortar store volume to feed same-day delivery demand. Those locations will be used like traditional warehouses, able to not only fulfill online orders, but also correct them.

Staple's has hundreds of locations throughout the US, yet the key is partnering with a delivery provider that can perform on-time services and develop a profitable same-day logistics solution. Many retailers like Staple's, build their same-day delivery with a Same-Day Courier like A-1 Express that has a national footprint and courier expertise to establish a sound delivery operation. With its' experience, The Seattle Courier can assist Staple's thrive as it pursues to compete with BestBuy, Amazon and more.

Reference: 6.15.16, www.pymnts.com, Staples Jumps Into Same-Day Delivery

UPS May Go Same-Day Delivery

When UPS begins to study Same-Day Delivery, there must be something big coming in the package delivery industry. Business Insider has reported UPS has made a strategic investment into start-up company Deliv to study the same-day delivery model and see how that market segment evolves. The Strategic Enterprise Fund, the venture arm of UPS, is leading a $28 million funding round for Palo Alto, California-based Deliv. The article mentions there has been non-disclosed investment size, yet UPS will take a minority stake in Deliv and sit in on board meetings as both companies analyze the service.

The managing director of the UPS Strategic Enterprise Fund, Rimas Kapeskas, commented about the strategic investment in the phone interview. He stated, "We don't participate in the on-demand business as much, and the consumer side of this is still a bit of a mystery to us. This is a rapidly evolving marketplace and we thought we could learn more by being close to it." Same-day delivery is definitely worth, not only a closer look, but to devise a plan to brand and implement the service within any company in today's business evolution. Same-day delivery is forecasted to reach $987 million by 2019.

Deliv Chief Executive Daphne Carmeli weighed in on the phone interview also, commenting on the investment from it's perspective. She stated, "We are solving a different problem in the last mile, and they (UPS) are looking to learn that model and looking to learn about growth in same-day delivery as we are interested to learn from their success." Both companies are good at their respective niches and this type of strategy positions both of them to compete against front runner Amazon.

The e-retailer has consistently expanded same-day delivery within the US online market, even offering the service for free is various major US cities. Last year, Amazon launched free same-day delivery last year in 14 metropolitan cities the US, beginning with California cities. It also has same-day delivery in the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, Indianapolis, Boston, Phoenix, San Diego, Washington DC, Philadelphia, Baltimore, Tampa Bay, New York, and Atlanta. More major US cities are probably to come.

UPS's interest in same-day delivery may in fact have do with Amazon's recent moves that indicate the retail leader is headed toward creating its' own global delivery network. This would mean that UPS will have a lot on their hands to deal with because a network like this will put Amazon in directi competition with UPS, DHL and FedEx. China's e-commerce is expected to hit $1 trillion by 2020, meeting the demand of 900 million shoppers, and this is where Amazon could launch the new delivery system.

Once UPS learns same-day delivery, it will see the potential and versatility that most companies are beginning to understand it brings. Shoppers like on-demand options, and companies are partnering with a Same-Day Courier like A-1 Express to implement innovative same-day solutions. This Seattle Courier has the courier expertise and nationwide footprint to help retailers and delivery companies compete utilizing same-day delivery.

Reference: 2.22.16, www.businessinsider.com, Nick Carey/Mari Saito, With Deliv investment, UPS hopes to study same-day delivery market

Amazon Expands Again, This Time It's Seattle

Amazon expands again, as it moves closer and closer to providing same-day delivery nationwide. USA Today reported how Amazon has literally come home with the popular service. Seattle is Amazon's hometown, and the web retailer has now implemented same-day delivery of thousands of products there. Prime Now will cover not only Seattle, but also Bellevue, Redmond and Kirkland zip codes and more will probably follow.

The fast service is taking the retail market by storm, especially with offering free same-day services in Seattle and California. More cities are set to be added, such as San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, Philadelphia, Phoenix, San Diego, Tampa Bay, Washington DC, New York, and Atlanta. These are all major cities that the service can ideally thrive in, being they have the economies of scale to make same-day delivery profitable. Prime Now started last December, and will span the US soon enough.

How the service works is Prime Now is currently free for all members, which is performed within a two-hour window. For even faster service, Prime Now one-hour delivery is available for $8. Deliveries are made between 8am and 12am local time, seven days a week. Prime members pay $99 per year for free two-day shipping as well. Each option fits different shoppers and how they define convenience. With tech gadgets within an arms' reach, shoppers can purchase anything from wherever they are. This makes Amazon and other companies position themselves to have their online products accessible from anywhere too.

The article mentioned how Amazon's Prime Now is helping the web-based retailer to compete with big-box retailers like Wal-Mart and Target. Wal-Mart is not only involved in same-day delivery in several US cities, but has also acquired online giant Yihaodian, which provides same-day and next-day delivery in China. It won't be long before we find Wal-Mart offering more same-day delivery in the US. Target is gaining ground online as well, experiencing 26% web sales growth and partnered with Google Express to make their delivery model work.

Macy's is not far behind in the same-day delivery race. In fact, it may be ahead. The retailer expanded into nine more US markets this month. Prior to the holiday season in 2014, Macy's aggressively rolled out same-day delivery in 8 major US cities, which included San Francisco, Los Angeles, San Jose, Houston, Chicago, Seattle, Washington DC, and New Jersey. Now, not only with the new nine markets, Macy's will launch the service in a total of 14 new markets this year, making its' span larger than Amazon's. Both companies are gearing up for the holiday season only a few months away.

Amazon's market reach is compelling other retailers to expand their own. A same-day courier like A-1 Express is a viable option for web-based and physical store retailers to partner with and grow. The Seattle Courier has a national footprint and develops fast implementation for same-day delivery expansion. No matter where a retailer needs to deliver within big cities for their same-day models, A-1 Express can logistically get it there.

Reference: 8.26.15, Yahoo News, Don Reisinger, Amazon's same-day delivery comes to Seattle

Deliv Follows Google, Expands Into Four More Cities

As the race for same-day delivery intensifies, the retail industry is finding more and more web-based retailers in hot pursuit of the market that it dominated for decades. Now that online retail is consistently growing, brick-and-mortar stores have the likes of companies like eBay, Amazon, Google, and other to deal, especially now that shoppers find same-day delivery convenient. The only sensible move to make was to dive into offering customers their purchases the same day as well. Google and Amazon now have Deliv to compete with for retail market share.

This is how you can have a startup company like Deliv find a niche involving partnering with retail stores to deliver their store items to its' shoppers. The Wall Street Journal has reported Deliv is expanding into offering same-day delivery into 4 more metropolitan areas and 18 more shopping centers. It already provides the service from malls, even from stores like Macy's. The 4 expansion cities include Seattle, Washington D.C., Northern New Jersey, and Houston. Deliv has landed agreements to provide service out of new malls, such the the Beverly Center in Los Angeles. This expansion comes shortly after Google launches into 3 more US cities.

Deliv has been providing same-day delivery in San Jose, San Francisco, Los Angeles, and Chicago. These are some of the same major US cities that most retailers jump start same-day delivery. Now Deliv is expanding its' services into more major cities, apparently gearing up for the quickly approaching holiday season. Physical store retailers are fully aware that to compete with Amazon and Google, they will have to, at the least, offer some form of the service to keep its' customers loyal and to attract new ones. Macy's and others will surely see the benefit at year's end, as they stand toe-to-toe with web-based retailers.

In the WSJ article, Deliv CEO Daphne Carmeli touted about the advantages if its' service model versus others. “This works because we’re more like the airport shuttle with 15 people it’s delivering at once than the yellow cab service with just a single passenger. It turns out people don’t want their deliveries in one hour, they want set times typically in a few hours. That means we can combine deliveries.” The volume of drops makes the difference, which is why the demographics have to include a dense population in order for same-day delivery to be effective and profitable long-term.

Deliv is just one example of how a transportation company is the best resolve for physical retailers to becoming more versatile than ever. Its' model follows Google, as it has also partnered with several major retail store chains such as BestBuy, Wal-Green's, Toys-R-Us, Target, and more, helping retail sales increase. A same-day courier like A-1 Express is a logistical expert in last-mile deliveries and has a national footprint to implement any same-day delivery model. The Seattle courier can fulfill online orders fast, including error deliveries, online store returns, and store exchanges.

Reference: 10.27.14, The Wall Street Journal, Greg Bensinger, Startup Deliv Widens Same-Day Delivery, Following Google

Joint Venture of Alibaba And Amazon Means Same-Day Delivery Growth

If you think about online retail right now, you probably will have Amazon at the top of the list, as well as Google and eBay. Yet, there is a newcomer that is currently local to China with plans to expand. With a lot of momentum, Alibaba is becoming well-known very fast. Even to the extent of being compared to the likes of Amazon. There is even now discussion of the e-retailer teaming up with Amazon to gain more online market.

Alibaba is a China-based online retailer, similar to Amazon, that has expressed it is open to a joint venture with Amazon. CNN Money reported last week how Alibaba's co-founder and CEO Jack Ma in an interview with Bloomberg News on the floor of the New York Stock Exchange, stated that he would welcome partnering with the American online giant. He stated, "I would be interested in talking because as always, anything, anybody that involves helping small business we will feel excited". It appears Alibaba is optimistic about it's current stance in the world of e-commerce and to team up with Amazon will do volumes for expanding, especially in the US.

Alibaba could gain much from Amazon's established footprint in the US. Amazon has a number of distribution centers strategically in major US cities, which Alibaba could gain from. This is one of the differences the two online retailers have. Alibaba doesn't have robust fulfillment centers and does not own most of its' sold items. Also, Amazon has 132,000 employees to support its' efficient operation, compared to Alibaba much smaller employee base. However, at a certain point, a joint venture between the two would end, if they begin seeking after the same customers. Ma wrote in a letter to employees this year, "Lying behind the massive allure of the capital market, there is unparalleled ruthlessness and pressure. In this market, only a small number of outstanding enterprises can maintain a gallop."

What type of partnership Alibaba and Amazon could create, only time will tell. Yet, once the time comes to ultimately get the online products to their shoppers' front door, it probably would involve same-day delivery. Amazon has impacted the physical store and web-based retailers with its' aggressive implementation of same-day delivery, which gets customers their products fast. It's distribution centers have been built to support the service and now Amazon has been rolling out same-day delivery in multiple cities. This includes a launch in early August in New York City, Indianapolis, Baltimore, Washington DC, Philadelphia, and Dallas. Also, Amazon's most recent announcement offering same-day delivery in Atlanta and a number of surrounding metro cities.

Physical store retailers are definitely gleaning from Amazon and implementing same-day delivery as well. Barnes & Noble is partnering with Google to offer same-day delivery of its' books in several cities. Google Shopping Express affords brick-and-mortar retailers a partner to offer their store products to be delivered the same day also. Brand department store leader Macy's has also recently announced partnering with Deliv and join the race for same-day delivery. It will begin this fall offering it in Chicago, San Jose, Houston, Los Angeles, San Francisco, Seattle, D.C. and New Jersey. Bloomingdale's will be doing the same in some of those cities also.

Amazon has stated it will utilize its' own fleet to perform its' deliveries, however, other retailers don't have to. A number of retailers are partnering with a same-day courier like A-1 Express to perform the deliveries for them. The Seattle courier has a national footprint and can quickly implement a same-day logistics solution. A-1 Express can be a one-stop source for same-day delivery, store returns and even shoppers can utilize the courier as well relative to their online purchases. For Amazon and Alibaba, even mentioning a partnership shows that other companies should become even more innovative to increase their online growth, or it may get hard trying to swim upstream in a dominated market.

Reference: 9.19.14, CNN Money, Jesse Solomon, An Amazon-Alibaba deal? It's possible